Caprolactam Market Overview
Major trend being witnessed in the caprolactam market is upcoming investments and expansions. Caprolactam is a compound that is increasingly replacing metals in automotive applications such as air intake. Hence, in terms of research and development, manufacturing associations and end-product manufacturers impart high investments for future expansions and technology modifications of the compound. The continuous improvements in the processing and manufacturing standard of the end-products is the major trend in the market.
Caprolactam is an organic compound, which is basically a colorless solid and is a lactam of caproic acid. The caprolactam market is expected to grow on account of expanding automobile industry and growing demand for industrial yarn across the world. The market is largely driven by demand generated from nylon-6 production as almost all of the compounds produced are utilized in the manufacturing of nylon-6. In water, the compound hydrolyses to form aminocaproic acid, which is used medicinally. It is an important polymer having a wide range of applications across different industries.
On the basis of type, the caprolactam market is categorized into nylon 6 resins and nylon 6 fiber. The category of nylon 6 resins is further categorized into engineering plastics, packaging, electronics, and others (lysine synthesis, composites, and musical strings). Moreover, the category of nylon 6 fiber is further classified into textile, industrial, carpet, machinery, electrical and environment, automotive, film and coating, consumer goods, appliances, and wire and cable.
Caprolactam industry is expected to grow at a significant pace owing to the fact that caprolactam is used to produce nylon 6 fibers and resins that are used widely in various applications. Due to superior chemical as well as physical characteristics of the compound such as light weight and high tensile strength, the nylon 6 fibers have become materials of choice in various textile and carpets application. Also, the fibers are used for making tire cords due to their tensile strength, durability, and fatigue resistance. The growing demand for nylon 6 fibers will continue to aid the growth of the caprolactam market.
Based on region, the caprolactam market is categorized into Europe, North America, Asia-Pacific, Latin America, and Middle East and Africa. Among all the regions, Asia-Pacific was the largest market for caprolactam followed by North America and Europe. The growing demand for nylon 6 fibers for making different types of clothing materials in Asia-Pacific countries such as China and India will boost the consumption of caprolactam in the region.
Caprolactam Market Dynamics
Growth Drivers
One of the major drivers identified in the caprolactam market is the growing purchasing power of individuals in the developing countries. In the recent times, countries such as China and Indian have undergone rapid economic development. The increased economic prosperity in these countries have resulted in growth of middle-class population having high purchasing power. With high purchasing power, the clothing industry in these countries has witnessed a significant growth, which in turn, is boosting the demand for caprolactam used in fabric production.
Restraints
One of the major restraints identified in the caprolactam market is the instability in raw material prices for producing the compound. Unstable raw material prices and concentration of demand of the compound in few countries are the key challenges for caprolactam market. Due to constant fluctuation in the prices of the raw materials, the companies engaged in the production of the compound witness variability in profit margins, which eventually force these companies to delay their expansion plants. Moreover, regions such as Asia-Pacific holds the largest capacity to produce the compound, with Europe and North America also having large volumes of the compound. However, some of the companies producing the compound faces challenges of strict regulation and inadequate infrastructure.
Opportunities
With rapid urbanization and industrialization, the caprolactam market is growing exponentially in emerging economies. The growing demand for clothing and automobile in Asia-Pacific countries such as China and India is encouraging the demand for caprolactam. In coming years, emerging countries will achieve greater economic development resulting in increased per capita income. This will enhance the individual’s spending capacity on clothing, which in turn, will create growth opportunity for the market.
Caprolactam Market Competitive Landscape
Some of the major players in the global caprolactam market include Koninklijke DSM N.V., Honeywell International Inc., Ube Industries Ltd., BASF SE, Capro Corporation, China Petrochemical Development Corporation, OSTCHEM, Braskem SA, DOMO Caproleuna GmbH, Gujarat State Fertilizers & Chemicals Ltd., Shandong Haili Chemical Industry Co. Ltd., Sumitomo Chemical Co. Ltd., LANXESS AG, Toray Industries Inc., and Univex Corporation.
The study provides historical as well the forecast market size data for various countries, including the U.S., Canada, France, Germany, the U.K., Italy, Spain, Japan, China, India, Brazil, Saudi Arabia, and South Africa.
